CENTRAL INTELLIGENCE BULLETIN

• Document Type: CREST
• Collection: General CIA Records
• Document Number (FOIA) /ESDN (CREST): CIA-RDP79T00975A010400220001-1
• Release Decision: RIPPUB
• Original Classification: T
• Document Page Count: 13
• Document Creation Date: December 14, 2016
• Document Release Date: March 7, 2003
• Sequence Number: 1
• Publication Date: October 26, 1967
• Content Type: REPORT

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DIRECTORATE OF
INTELLIGENCE
Central Intelligence Bulletin
STATE review(s) completed.
Top Secret
Cm 173
26 October 1967
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Central Intelligence Bulletin
CONTENTS
Egypt-Israel: Egyptian economy suffers major blow
from shelling of refineries, (Page 3)
USSR: Soviets may resume transmitting satellite
weather data to the US. (Page 5)
European Communities: The Six are still sharply
divided over British membership. (Page 6)
Peru: Belaunde says decision to buy French jet
fighters cannot be reversed. (Page 7)
Peru: US-owned businesses may be harmed by
dispute between IPC and the government. (Page 8)
Congo (Kinshasa): The mercenary problem (Page 9)
Chile: Anti- US demonstrations (Page 9)
Communist China - Hong Kong: Border discussions
(Page 9
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Next 1 Page(s) In Document Exempt
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Tripoli
LEBANON
BEIRUT?'
-Port Said STRIP /.... ~..~+"~
68435 10-67
Area occupied by Israel
Ap
26 Oct Map
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Egypt-Israel: The extensive damage done by the
Israeli shelling to the two refineries at Suez is a ma-
jor blow to the Egyptian economy.
the
entire production capacity o 14U,UUU barrels per day
is out of commission, at least temporarily. In addi-
tion, up to half of the country's oil storage capacity
has been destroyed or damaged, along with the con-
tents of the tanks.
Rebuilding of the refineries may take up to two
years from the start of construction. Since petroleum
products provide about two thirds of Egypt's total en-
ergy requirements, a very large share of the remain-
ing industrial production may be curtailed by an oil
shortage.
In order to maintain its present level of consump-
tion, Egypt would have to import about $5 million of
refined products per month. The domestic pipeline
terminal at Suez probably has also been damaged se-
riously. This would complicate the problem of dis-
tributing any refined products Egypt may be able to
import.
Finally, limited storage capacity could force Egypt
to close down production at the Morgan oil field in the
Gulf of Suez within a few days.
(Map)
26 Oct 67
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USSR: A meteorological satellite launched from
Plesetsk on 24 October should enable the Soviets to
resume transmission of satellite weather data to the
US.
Moscow stopped sending such data in mid-Septem-
ber, probably because the quality of its information de-
teriorated below the level required by the Soviet-Ameri-
can agreement of 1962. The Soviets are receiving spo-
radic weather data from their "Meteor" system, two
satellites launched in February and April. These satel-
lites are large, but have a useful lifetime of only about
six months, Smaller US systems have returned high
quality data for periods in excess of a year.
The Soviet weather satellite performance has never
fully satisfied the terms of the agreement. The first So-
viet satellite to operate satisfactorily was not launched
until June 1966, one year after the exchange of data was
to have begun. Moscow did not send any data at all until
September 1966, and the usefulness of the information
passed has been limited because the Soviets have failed
to transmit it within the six-hour time limit specified in
the agreement.
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European Communities: This week's meeting of the
European Communities' Council of Ministers left the Six
as sharply divided as ever over opening negotiations with
London on British membership.
Some observers believe that the French, at the meet-
ing, came as close to vetoing negotiations as possible with-
outactually doing so. Foreign Minister Couve de Murville
stated categorically that the restoration of equilibrium in
the UK's balance of payments and the "adaptation" of ster-
ling's role from that of an international currency were
"necessary preconditions" to negotiations. He again pointed
to the possible dangers involved in enlarging the community.
The French may have left themselves a way out in the
event they find it expedient to soften their position. Couve
claimed that France had no objections "in principle" to new
members and noted that negotiations should begin only if
it were clear they could succeed. Otherwise, they would
once again run the risk of breaking down.
All of the Five spoke in favor of British entry. The
Benelux countries apparently were firmest in stressing the
need for immediate talks with London. West German For-
eign Minister Brandt stated that the problem had to be
treated right away among the Six and "soon" with the candi-
dates for entry. At the next Council meeting on 20 Novem-
ber the ministers presumably will discuss in more detail
Britain's economic and monetary problems.
British Prime Minister Wilson's initial response to
the meeting this week leaves little doubt that London will
continue to press its entry bid. The British probably rea-
son that the only way to force a showdown is to pursue an
active campaign for UK membership.
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Peru: President Belaunde has told the US ambas-
sador in Lima that Peru's decision to purchase Mirage-
V supersonic aircraft cannot be reversed.
Belaunde emphasized it would be a waste of time to
discuss further the US offer of F-5 aircraft as a substi-
tute for the Mirage. When he was warned that this deci-
sion would imperil the pending US program loan, he said
that if this meant the end of economic relations between
Peru and the US, the sooner he knew it the better.
The ambassador noted that Belaunde seems harassed
by urgent problems arising from the generally tense situa-
tion in the country. Specifically, Belaunde is worried
about the disturbances in Lima-Callao and the general
strike in Arequipa, which he fears may spread to other
cities.
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Peruvian military leaders are known to be concerned 25X1
over the growing unrest within the country and may even-
tually intervene if the government appears unable to han-
dle the present situation.
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Peru: The future of US-owned businesses in Peru
may be adversely affected by a new dispute between the
International Petroleum Company (IPC) and the govern-
ment.
Since Peru devalued its currency on 1 September,
IPC has suffered heavy financial losses because of the
government's insistence that it maintain predevaluation
prices for the refined petroleum products it brings into
the country. President Belaunde has promised some
relief after the congressional elections on 12 November,
but has refused to say just what will be done. As a re-
sult, IPC has been deliberately holding back on imports.
The present dispute will make it more difficult to
settle other points at issue between the company and the
government, especially the thorny problems of back taxes
allegedly owed by the company and compensation for se-
questered properties
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Congo (Kinshasa): US officials in Kinshasa are be-
coming concerned about the lengthy delay in evacuating
mercenaries .and Katangans from the eastern Congo,
The International Red Cross, which is to supervise the
operation, has run into a number of bottlenecks, and it
is not entirely certain that Schramme remains willing
to leave. Other mercenaries in Angola may get their
"invasion" under way before the Schramme forces can
be evacuated, although there have been no firm indica-
tions yet that the Angola plotters are ready to move right
now
Chile: Anti-American demonstrations probably
will occur in Santiago during the three-day Continental
Youth Solidarity Conference on Vietnam that begins on
30 October. The conference is being organized by the
youth groups of the Communist and Christian Democratic
parties, assisted by the first secretary of the Commu-
nist World Federation of D mocratic Youth who arrived
in Santiago on 20 October.
Communist China - Hong Kong: The Chinese Commu-
nists have proposed talks between Chinese and Hong Kong
border authorities on the question-of the British police in-
spector abducted on 14 October, The Chinese apparently
are attempting to place the British in a poor initial negotiat-
ing position, however, by insisting that the talks be held
exclusively on Chinese territory.. Although the British have
responded favorably to the idea of talks, they have balked
at this condition, fearing that such a move would look like
a Macao-type "ca itulation" and help erode public confi-
dence.
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